Malema challenges tax agency's bid for more cash

Economic Freedom Fighters leader Julius Malema is disputing the SA Revenue Service's (SARS) claim that he still owes them money for the tax years that saw him provisionally sequestrated.

This comes after a statement by the tax agency‚ in which SARS stated that although it on Monday withdrew its application to have Malema sequestrated‚ he still owed it money and it would recover the debt.

“SARS will continue to take the necessary steps available to it in terms of the Tax Administration Act to recover all tax debts that might be due‚” SARS spokesman Luther Lebelo said.

In an angry response late on Tuesday afternoon‚ Malema said he had instructed his attorneys to address an urgent letter to SARS to withdraw the statement.

“Should SARS refuse to do so I will urgently approach the High Court for an order that the compromise agreement is valid and that I do not owe any debt to SARS relating to the 2005 to 2011 tax periods‚” his statement read.

SARS obtained a provisional sequestration of Malema in February last year because he owed the taxman R18-million. In May last year‚ Malema and SARS reached a compromise agreement whereby Malema agreed to pay R7.2-million.

In March this year‚ SARS applied to the court to have the provisional sequestration declared final. SARS made this application because it believed Malema had contravened terms of the compromise agreement by‚ among other things‚ not disclosing the source of money used to settle the debt.

SARS claimed it was not bound by the terms of the compromise agreement and said Malema still owed it R18-million‚ plus another R14-million for additional assessments raised last year for the 2011 and 2012 years of assessment.

SARS claimed Malema’s total tax bill was R32.9-million.

SARS counsel Nic Maritz SC informed the high court in Pretoria on Monday afternoon that the revenue service had withdrawn its application against Malema.

Lebelo said the revenue service made its decision to withdraw its application after weighing up the issues raised by Judge Gregory Wright with Maritz. He said SARS had several legal instruments available to it to recover outstanding tax debt owed to it by Malema.

When the matter was heard on Monday‚ the judge asked Maritz why SARS wanted Malema to be sequestrated in order to recover its tax debt. Maritz said a sequestration order would give SARS more means to interrogate him about his assets.

However‚ Wright said there was no evidence before the court that Malema has more assets to settle his tax debt.

Lebelo said on Tuesday that SARS was not bound by the previous compromise agreement and would be able to take steps to recover outstanding taxes.

“It is important to note that the court made no finding that SARS is bound by the compromise agreement with Mr Malema that it entered into in May 2014. SARS retains its position that the compromise agreement is not binding. Hence no concession has been made by SARS‚ with respect to the recovery of the current and future outstanding taxes.”

TMG Courts and Law